Singtel's quarterly profit drops nearly 6%, revenue up 8%

Friday 11 August 2017 | 12:08 CET | News

Singtel reported operating revenue up 8.3 percent year-on-year to SGD 4.23 billion in the quarter ended 30 June. EBITDA was up nearly 3 percent to SGD 1.26 billion, while net profit fell 6 percent year-on-year to SGD 892 million, as a result of lower associates’ contributions and exceptional charges for workforce restructuring at Optus. Free cash flow was SGD 1.2 billion.

In Australia, revenue increased 6 percent with growth across mobile and fixed services. EBITDA rose 3 percent as customer growth offset higher content cost and credits from device repayment plans. Singtel’s Optus unit added 59,000 postpaid handset customers, while prepaid handset customers decreased by 18,000 due to Optus’ focus on acquiring quality customers. Mass market fixed revenues were up 13 percent, mainly on higher NBN revenues driven by customer growth and migration payments.

In Singapore, revenue rose 2 percent as growth in data usage, home services and equipment sales offset declines in voice and roaming services, Singtel said. Equipment sales rose on strong demand for new smartphones and more consumers re-contracting at higher tier plans to access higher tier data allowances. Mobile communication revenue remained resilient as data growth offset lower voice traffic. On the home front, revenue increased due to growth in subscriptions of higher-tier fibre broadband plans and add-on services as well as the sub-license of Premier League content rights. EBITDA fell 3 percent. Excluding one-off items from the year before, EBITDA grew 2 percent on higher contributions from home services and content cost management.

The Group Enterprise business revenue was up 1 percent as growth in ICT services partially offset the decline in traditional carriage services. ICT revenues grew 6 percent. ICT services now contribute 44 percent of Group Enterprise revenue. EBITDA fell 1 percent as a result of lower contributions from carriage services and continued investments in ICT and cyber security capabilities.

Group Digital Life’s revenue jumped 91 percent, boosted by Amobee’s performance in social and media advertising, and first-time revenue contribution from Turn, a global technology platform for marketers and agencies, which was acquired by Amobee in April this year. Overall EBITDA improved despite higher content investments at HOOQ, Singtel said. Amobee achieved EBITDA breakeven this quarter. With the integration of Turn, Amobee is realising synergies and winning new companies such as KIA, Spotify and Constellation Brands as clients.

Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

::: add a comment